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Text File  |  1996-08-23  |  15KB  |  248 lines
  1. @249 CHAP ZZ
  2.  
  3.  
  4. >                       BUSINESS PLAN OUTLINE
  5. >
  6. >                       FOR:  @NAME                                    
  7. >                  [Delete this line and insert title, company, etc.]
  8. >
  9. >         A.  EXECUTIVE SUMMARY.
  10. >                 [This should be an overview and lead-in to the rest
  11. >                  of the business plan.  It should emphasize your
  12. >                  competence in three key areas:  marketing, technical
  13. >                  capabilities, and financial management.]
  14. >
  15. >             (1) Description of Proposed Business.
  16. >                 [Describe below your product or service.  Where
  17. >                  possible, supplement with diagrams, illustrations
  18. >                  or pictures in the final package you show to
  19. >                  prospective lenders or investors.  Insert as many
  20. >                  extra lines as needed--delete these instructions,
  21. >                  using "-" key.]
  22. >                  ____________________________________________________
  23. >                  ____________________________________________________
  24. >                  ____________________________________________________
  25. >             (2)  Marketing Approach.
  26. >                  [Provide a brief description of the market segment
  27. >                   you will be trying to reach.  Then outline the
  28. >                   channel(s) you will use to reach this market, such
  29. >                   as direct mail, retail, or wholesale distributors.]
  30. >                  ____________________________________________________
  31. >                  ____________________________________________________
  32. >             (3)  Projected Financial Performance.
  33. >                  [Give your estimated dollar amount of sales and net
  34. >                   profits that you project for each of the first 3 to
  35. >                   5 years of operating, then set forth the amount of
  36. >                   starting capital you will need.  Where cash flow is
  37. >                   negative (as is usual) in the first few years, it
  38. >                   may be helpful to show your net cash "exposure" or
  39. >                   cumulative negative cash flow for each month or
  40. >                   quarter, to show that your initial starting capital
  41. >                   will be more than sufficient to cover such maximum
  42. >                   exposure.]
  43. >                  ____________________________________________________
  44. >                  ____________________________________________________
  45. >
  46. >         B.  STATEMENT OF OBJECTIVES.
  47. >             [In this part, you need to do a selling job on the
  48. >              prospective investor, discussing the unique advantages
  49. >              your product or service has over existing products and
  50. >              services.  State both your short-term and long-term
  51. >              business objectives for the business, and describe the
  52. >              image you want to create for your product or firm.]
  53. >                  ____________________________________________________
  54. >                  ____________________________________________________
  55. >
  56. >         C.  QUALIFICATIONS OF PRINCIPALS.
  57. >             [Describe in this section your background qualifications
  58. >              to run this particular business, citing education,
  59. >              overall business experience and particularly any
  60. >              successful experience in a closely-related type of 
  61. >              business operation.  Also describe, if applicable, the
  62. >              qualifications of your partners or other co-owners who
  63. >              will be part of the management (or board of directors,
  64. >              in the case of a corporation) of the proposed business.]
  65. >                  ____________________________________________________
  66. >                  ____________________________________________________
  67. >
  68. >         D.  DESCRIPTION OF PRODUCT.
  69. >         D.  DESCRIPTION OF SERVICES TO BE OFFERED.
  70. >                 [Delete one of the above headings.]
  71. >
  72. >             [Provide a complete technical description of the product
  73. >              or service to be offered, in considerable technical
  74. >              detail, including a summary of any test data if any 
  75. >              sort of testing work has been done, or describe any 
  76. >              tests that are currently planned.  Also, show that you 
  77. >              are already anticipating the future by outlining any 
  78. >              further refinements or logical next steps for developing
  79. >              an improved or different product later (or comparable 
  80. >              plans for further innovations in a service business).  
  81. >              This is your chance to show that you really have 
  82. >              something that is a better mousetrap and is also 
  83. >              technically feasible.]
  84. >                  ____________________________________________________
  85. >                  ____________________________________________________
  86. >
  87. >         E.  BACKGROUND OF PROPOSED BUSINESS.
  88. >             [Spell out here the background conditions in the
  89. >              business in question, including how, where and when
  90. >              the product is being used, as well as where trends in
  91. >              the business or industry seem to be leading.  Also
  92. >              discuss who the main players (i.e., your competitors)
  93. >              are, or are likely to be, in the case of a fledgling
  94. >              industry.  Then explain where your business will fit in
  95. >              to this picture.  Will you be on the cutting edge of
  96. >              what is happening, or just one of the pack that is
  97. >              not in the same league as the leaders?  If the latter,
  98. >              you will need a very convincing rationale to show why
  99. >              you can garner enough business to meet your financial
  100. >              objectives, which are discussed in the next section.]
  101. >                  ____________________________________________________
  102. >                  ____________________________________________________
  103. >
  104. >         F.  MARKETING PLAN.
  105. >             [Discuss here your marketing plan or strategy.  This will
  106. >              include identifying the market segment you are seeking
  107. >              to reach, and the various means through which you intend
  108. >              to reach it, such as door-to-door sales, retail sales,
  109. >              direct mail, media advertising, selling through sales
  110. >              reps, jobbers, Amway-type multi-level distributorships,
  111. >              or whatever else you plan to do.  Mention also the
  112. >              degree of market penetration and market share you expect
  113. >              to achieve, year-by-year, for the period for which the
  114. >              business plan is making projections (say 3 to 5 years).]
  115. >                  ____________________________________________________
  116. >                  ____________________________________________________
  117. >
  118. >         G.  SALES STRATEGY AND TACTICS.
  119. >             [Discuss in this segment how you plan to go about
  120. >              creating an awareness of the product among its ultimate
  121. >              consumers, through advertising, publicity or otherwise,
  122. >              even though most of your sales may be made to middlemen
  123. >              such as wholesalers or retailers.  Cover all methods 
  124. >              you will employ, such as telemarketing, circulars, print 
  125. >              or electronic media advertising, direct mail, catalogs,
  126. >              or other means.  Here it will be useful to include
  127. >              photocopies of dummy ads, brochures or other promotional
  128. >              materials that you may have already prepared, if you
  129. >              feel they will be effective in selling your business
  130. >              plan.]
  131. >                  ____________________________________________________
  132. >                  ____________________________________________________
  133. >
  134. >         H.  ORGANIZATIONAL PLAN.
  135. >             [Here it is important to spell out in a convincing way
  136. >              your plans for structuring the organization, including
  137. >              a description of the key positions and the people who
  138. >              you have lined up to fill them, with their (hopefully
  139. >              impressive) qualifications.  Include in this section an
  140. >              operational plan, describing in detail the type, and, if
  141. >              known, location of facilities that will be required, and
  142. >              equipment that must be obtained.  Also discuss what
  143. >              portions of any production work will be done by outside
  144. >              subcontractors, and what parts will actually be done by
  145. >              your people.  For the 3 or 4 key people in the company
  146. >              (including each top person in the sales, finance and
  147. >              technical departments), include their resumes at this
  148. >              point, or place them in an Appendix at the end of the
  149. >              business plan, but refer to them here.]
  150. >                  ____________________________________________________
  151. >                  ____________________________________________________
  152. >
  153. >         I.  FINANCIAL AND TECHNICAL DATA.
  154. >             [Here is where you include detailed pro-forma financial
  155. >              statements and other important data in support of the
  156. >              conclusions you have set forth in other parts of this
  157. >              business plan.  These should include most or all of the
  158. >              following:]
  159. >
  160. >             1.   Financial Projections:
  161. >                  (a) Profit and Loss Projection.
  162. >             [These should be on a monthly basis for the first year or
  163. >              two, and quarterly for subsequent years, in most cases.]
  164. >                  ____________________________________________________
  165. >                  ____________________________________________________
  166. >                  (b) Pro-Forma Balance Sheets:
  167. >             [These should show your projected ending financial
  168. >              picture for each of the periods covered by the P & Ls.]
  169. >                  ____________________________________________________
  170. >                  ____________________________________________________
  171. >                  (c) Cash Flow Projection.
  172. >             [Show monthly or quarterly and CUMULATIVE pro-forma cash
  173. >              flows, which should tie into the P & L and balance
  174. >              sheets for each period covered.]
  175. >                  ____________________________________________________
  176. >                  ____________________________________________________
  177. >                  (d) Break-Even Analysis.
  178. >             [In chart form or otherwise, show the level of sales you
  179. >              will need each year in order to break even for that
  180. >              period.]
  181. >                  ____________________________________________________
  182. >                  ____________________________________________________
  183. >                  (e) Acquisition Schedule for Fixed Assets.
  184. >                  ____________________________________________________
  185. >                  ____________________________________________________
  186. >
  187. >             2.   Other Supporting Data.
  188. >
  189. >                  .  Technical Drawings of Product.
  190. >                  .  Detailed Description of Services To Be Offered.
  191. >                  [Delete one of the above lines, unless both apply.]
  192. >                  ____________________________________________________
  193. >                  ____________________________________________________
  194. >
  195. >                  .  Itemization of Capital Equipment Required & Cost.
  196. >                  ____________________________________________________
  197. >                  ____________________________________________________
  198. >
  199. >                  .  Pricing Schedule.
  200. >                  [Detailed list of prices for products or services
  201. >                   to be offered, in their different configurations.]
  202. >                  ____________________________________________________
  203. >                  ____________________________________________________
  204. >
  205. >                  .  Plant Layout.
  206. >                  [Include floor plans or layout of a proposed 
  207. >                   manufacturing plant, including a manufacturing 
  208. >                   flowchart and costing estimates for producing the
  209. >                   product, broken down into cost accounting detail.]
  210. >                  ____________________________________________________
  211. >                  ____________________________________________________
  212. >
  213. >                  .  Tooling Required for Production.
  214. >                  [Describe here all tooling that will be required,
  215. >                   and the estimated costs thereof.]
  216. >                  ____________________________________________________
  217. >                  ____________________________________________________
  218. >
  219. >                  .  Market Survey Data.
  220. >                  ____________________________________________________
  221. >                  ____________________________________________________
  222. >
  223. >         J.  SUMMARY AND CONCLUSIONS.
  224. >             [This is where you make your final pitch, so make it
  225. >              convincing.  Tell what your total capital requirements
  226. >              are and how much of a safety margin that will provide.
  227. >              Describe who will put up what debt and equity capital
  228. >              to get the business off the ground, and when each 
  229. >              infusion of capital will be required.  This will tell 
  230. >              the prospective investors how much of an ownership 
  231. >              interest they will be getting for X amount of money.  
  232. >              Reiterate the amount of profits you expect the business 
  233. >              to make, when you will make it, and how much of your 
  234. >              own money and property you are putting into the venture, 
  235. >              as evidence of your commitment.  Most outside investors
  236. >              are likely to be leery of investing unless it is clear
  237. >              that you have put your own financial neck on the line,
  238. >              so there's no chance of you simply "losing interest" and
  239. >              walking away to do something else after awhile.]
  240. >                  ____________________________________________________
  241. >                  ____________________________________________________
  242. >
  243.  
  244.  
  245.  
  246.                         --END OF CHECKLIST--
  247.  
  248.